President abolishes Quedancor

President Duterte has abolished the Quedan and Rural Credit Guarantee Corp. for its poor performance and overlapping functions with other agencies.

In Memorandum Order No. 13, the President authorized the liquidation of the corporation’s assets as well as the compensation for the affected personnel after more than two decades of existence.

“Quedancor has been operating at a loss for the last five years,” the order read. “Quedancor is now legally prohibited from continuing its guarantee function under its charter, having exceeded the allowable outstanding guarantee obligation provided therein,” it added.

The corporation was created in 1992 to provide loans to farmers, fisherfolk, and small entrepreneurs under its various guarantee and credit programs.

Malacañang noted that the Philippine Export-Import Agency, Small Business Corp., and the Agriculture Guarantee Fund Pool, placed in trust with the Land Bank of the Philippines, are operating more successful agricultural guarantee programs and projects compared to Quedancor.